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820*exp(-3/20)=
using a negative exponent, and multiplying

anonymous

6 years ago

y=a*b^x
a=820
b=1.05
x=3
y=820*1.05^3
y=949.2525

phi

6 years ago

True for non compounded interest. But here they want continuously compounded interest.
So we use e (2.71828...) If you want more info, Khan's videos are very good
http://www.khanacademy.org/science/finance/core-finance/v/introduction-to-compound-interest-and-e